[Title Page]
Contents
I. Introduction 11
II. Theoretical discussion and analysis 15
III. Institutional environment in Korea 18
1. Laws and regulations 18
A. Meanings of listing 18
B. Loss and gains 21
2. Listing of public enterprises 23
A. Policy backgrounds 23
B. Types of public enterprises and listed public enterprises 26
C. Issues related to listing 29
IV. Analysis of listed public enterprises: issues concerning listing and after listing changes 31
1. Korea Electric Power Corp.(KEPCO) 31
2. Korea Gas Corp.(KOGAS) 51
3. Korea District Heating Corp.(KDHC) 65
4. Industrial Bank of Korea(IBK) 77
5. Kangwon Land 85
6. Grand Korea Leisure Co., Ltd. 94
7. KEPCO KPS 99
8. KEPCO Engineering & Construction 111
9. Conclusion 120
V. For improvement of the management and operation of listed public enterprises 126
1. Issues and limits in the operation of listed public enterprises 126
A. Tension between ambivalent business goals: profitability vs. publicness 126
B. Lack of criteria for listing 129
C. Spread of awareness on the minority shareholders' rights 131
D. Lack of independence and professional capability of board of directors 132
E. Burden from uniform and overlapping management and evaluation 133
2. Suggestions for improvement 133
A. Setting up policy for listed public enterprises 133
B. Securing the stable business environment for listed public enterprises 134
C. Strengthening of professional capability and autonomy of directors 134
D. Simplification of assessment procedure and strengthening of performance- linked incentives 135
E. Revision of the Act on the Management of Public Institutions to enhance effectiveness of the operation of listed public enterprises 135
Bibliography 137
〈Table III-1〉 Differences between IPO(initial public offering) and listing 19
〈Table III-2〉 Requirements for listing on the KRX(private companies) 20
〈Table III-3〉 Positive effects of listing 22
〈Table III-4〉 Directions of government policy toward public enterprise listing 25
〈Table III-5〉 Legal basis of listed public enterprises and their listing 28
〈Table III-6〉 Shareholders composition of listed public enterprises(As of the end... 29
〈Table III-7〉 Listing types and IPO procedure 30
〈Table IV-1〉 KEPCO history 33
〈Table IV-2〉 Changes in the composition of KEPCO shareholders 36
〈Table IV-3〉 Changes of government and public organizations stakes 37
〈Table IV-4〉 Changes in the composition of the board of directors 37
〈Table IV-5〉 Amounts of loss(2008~2013) 42
〈Table IV-6〉 Dividends to shareholders 42
〈Table IV-7〉 Before and after listing changes in financial status 43
〈Table IV-8〉 Objectives of listing and fulfillment 45
〈Table IV-9〉 After listing changes 46
〈Table IV-10〉 KOGAS history 52
〈Table IV-11〉 Before and after listing changes in the composition of KOGAS... 55
〈Table IV-12〉 Before and after listing changes of the stakes of the government... 56
〈Table IV-13〉 Before and after listing changes in the KOGAS board of directors composition 56
〈Table IV-14〉 Financial status of KOGAS(2013) 59
〈Table IV-15〉 Before and after listing changes in financial status of KOGAS 60
〈Table IV-16〉 Goals of KOGAS listing and fulfillment 61
〈Table IV-17〉 After listing changes 62
〈Table IV-18〉 KDHC history 66
〈Table IV-19〉 Before and after listing changes in the KDHC shareholders... 69
〈Table IV-20〉 Before and after listing changes in KDHC ownership structure(stakes) 70
〈Table IV-21〉 Before and after listing changes in KDHC governance structure 70
〈Table IV-22〉 Financial status of KDHC 72
〈Table IV-23〉 Goals of KDHC listing and fulfillment 74
〈Table IV-24〉 After listing changes at KDHC 75
〈Table IV-25〉 IBK history 77
〈Table IV-26〉 Before and after listing changes in IBK's ownership structure(stake) 79
〈Table IV-27〉 Changes in the IBK governance structure 80
〈Table IV-28〉 Changes of IBK's financial status 81
〈Table IV-29〉 Goals of IBK listing and fulfillment 83
〈Table IV-30〉 After listing changes at IBK 84
〈Table IV-31〉 Kangwon Land history 86
〈Table IV-32〉 Before and after listing changes in the Kangwon Land ownership... 88
〈Table IV-33〉 Changes in governance structure of Kangwon Land 89
〈Table IV-34〉 Financial status of Kangwon Land 90
〈Table IV-35〉 Goals of listing and fulfillment 91
〈Table IV-36〉 Before and after changes of Kangwon Land 92
〈Table IV-37〉 GKL history 94
〈Table IV-38〉 Changes in the number of stocks and equity stakes 95
〈Table IV-39〉 Changes in the financial status of GKL 96
〈Table IV-40〉 Purposes of listing and fulfillment 97
〈Table IV-41〉 Before and after listing changes 98
〈Table IV-42〉 KEPCO KPS history 100
〈Table IV-43〉 Changes in the composition of KEPCO KPS shareholders 103
〈Table IV-44〉 Changes in the government and public-sector stakes of KEPCO KPS 103
〈Table IV-45〉 Before and after listing changes in the composition of the board of... 104
〈Table IV-46〉 Objectives of listing and fulfillment 108
〈Table IV-47〉 After listing changes of KEPCO KPS 109
〈Table IV-48〉 KEPCO E&C history 112
〈Table IV-49〉 Changes in the composition of KEPCO E&C shareholders 114
〈Table IV-50〉 Changes in the public-sector stake of KEPCO E&C 114
〈Table IV-51〉 Changes in the composition of the board of directors 115
〈Table IV-52〉 Items subject to the decision of the general shareholders' meeting 115
〈Table IV-53〉 Goals of KEPCO E&C's listing and fulfillment 118
〈Table IV-54〉 After listing changes at KEPCO E&C 119
〈Table IV-55〉 Changes of values of listed public enterprises 121
〈Table IV-56〉 Types of public enterprise listing 122
〈Table IV-57〉 Goals of public enterprise listing and fulfillment 123
〈Table IV-58〉 After listing changes 124
〈Table V-1〉 Comparison of financial performance of listed public enterprises and... 128
[Figure IV-1] Changes in the KEPCO stock prices after listing 38
[Figure IV-2] Changes in the KEPCO and KOSPI indexes 39
[Figure IV-3] KEPCO's price-earnings ratio(PER) 40
[Figure IV-4] Price to book ratio(PBR) of KEPCO 41
[Figure IV-5] Changes of profits and dividend payout ratio of KEPCO 41